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The younger you are the easier it will be to start planning for retirement. Even if you only have $400 leftover month-to-month or in a single year, it can help to start creating a life in the future through sound finances. Everyone thinks that people who retired with a million dollars in their savings accounts put aside large sums of money, but it doesn’t have to be so. If you are young, you have time on your side and you can start planning your retirement early using the value of compounding interest to help you meet your goals later in life.

There are a variety of ways to try to increase the value of just $400 so that year after year, it grows bigger until you are ready to retire. Traditional methods include investing it in value corporate stocks, or buying commodities, energy, or precious metal stocks, or you can contribute it to an IRA plan. Non-traditional methods can incur more risk, but they have some pretty good rewards. You can try lending out the $400 in peer-to-peer lending sites and getting a return that way too. In that case, it would be considered seed money and every time you get paid back, you would turn around and lend that and the interest out too, diversifying it amongst several people. If you don’t have a large number of defaults, this can be a way to grow your money consistently, until you have a larger chunk to invest traditionally.